New York, Jan 22, 2026, 18:18 EST — After-hours
- Shares of Applied Materials slipped roughly 2% late Thursday following a volatile session.
- The company scheduled its fiscal first-quarter results and conference call for Feb. 12.
- Traders noticed unusually heavy options activity clustering around the $330 strike as Friday’s expiration approached.
Applied Materials shares dropped roughly 2% in after-hours trading Thursday, last seen at $318.79. The stock kicked off around $332, peaked at $332.70, then dipped as low as $313.
This matters because investors finally have a firm date for the next earnings check, and chipmaking-equipment stocks tend to react sharply to any clues about 2026 spending. Applied Materials announced it will release its fiscal first-quarter results on Feb. 12, with an earnings call scheduled for that afternoon. (GlobeNewswire)
This follows a wave of bullish calls in the sector. Needham’s Charles Shi bumped his price target to $390 from $260, maintaining a Strong Buy rating. He cited “broad-based demand improvement over the past 90 days,” per a note shared by TheFly. (TipRanks)
Applied’s shares fell despite the broader U.S. market moving up. The S&P 500 climbed 0.55%, while the Dow added 0.63%, MarketWatch reported. (MarketWatch)
The slump wasn’t confined to one name. Lam Research dropped 3.37%, while KLA lost 1.32% during the session, weighing on the wafer-fab equipment sector—the firms supplying the gear for chip production.
The stock has been volatile this week. Applied dropped 2.68% on Tuesday, ending a brief winning streak, according to MarketWatch data. (MarketWatch)
Options trading surged amid the stock’s swings. Applied’s options volume hit 29,069 contracts on Thursday, with strong interest in $330 strike calls set to expire Jan. 23, according to data from Nasdaq.com. (Nasdaq)
The Feb. 12 call will quantify the debate fueling the stock: are chipmakers boosting tool orders for advanced logic, memory, and packaging — or merely maintaining spending after a solid stretch in the sector?
Applied, headquartered in Santa Clara, California, provides equipment and software for chipmaking and display manufacturing. Its performance often swings with customers’ capital spending cycles, which can shift quickly.
The setup can backfire just as fast. If management cites delayed tool deliveries, stricter export controls, or wary customer spending, the stock often pulls back sharply — particularly after hefty target upgrades.
Traders will be watching to see if the stock steadies after Thursday’s late drop, with Friday’s January 23 options expiration near $330 adding to the mix. The main event, though, is February 12, when Applied is set to report earnings and provide an updated outlook.
